Here's a link that I recently ran across, which might help;
http://enginesandmagnets.com/id16.html
(not sure if I posted it properly, so you might have to cut, then paste it into your browser.)
Anyway, the first thing that I would check, which he mentions as well, is the "kill" switch circuitry, and by circuitry, I mean the ground wire itself. I am not much of a fan of Tecumseh engines, but have worked on quite a few of them, and have to say that, as far as ignition problems, they seem to be quite reliable, and the only such problems that I can recall turned out to be loose, frayed, or otherwise damaged ground wires.